Kailasam was born in a Tamil family in southern Karnataka, India, and educated in England. On his return to Karnataka he worked to improve the literary scene there. His life was dedicated to local theater and his contributions revolutionised it. His application of humor to his plays left an everlasting impression on Kannadigas. He opposed the company theatre's obsession with mythology and stories of royalty and shied away from overloading his plays with music. Instead, he introduced simple, realistic sets. Kailasam chaired the Kannada Sahitya Sammelana held at Chennai, then called Madras, in 1945. His speech was short but effective.

Kailasam came from a family of scholars and professionals. His father was the eminent Justice Paramasiva Iyer. Kailasam had benefited from a good education in his youth and was sponsored by the Maharaja of Mysore to move on to higher studies in geology at London. Kailasam was enchanted with life in the United Kingdom and took the time to repeat several classes, one at a time, in order to have an excuse to extend his stay there. He spent a total of six years in school there, participating in theatre whenever possible, and then returned to India.

Soon after his return, he joined the government geology service. He took his work seriously and did well, but became unimpressed with life in a government job and quit. His father had had ambitious plans for Kailasam, hoping that he would become the Director General of the Geology Department. He was disappointed in his son and stopped talking to him. Kailasam barely noticed, as he had shed his former lifestyle and began living as a nocturnal bohemian, writing plays.

Kailasam was initially criticised for modern use of the Kannada language in his plays, but his work became popular and are considered among the best in Kannada theatre, legendary for their wit and satirical commentary on society, much of which is still relevant today.